- With the admission of Banco de Sabadell’s EMTN program, the volume of repatriated commercial paper and bond programs to BME in recent years is expected to exceed 84.7 billion euros
- Admissions to trading of fixed-income securities on Spanish markets grew 42% last year to 68 billion euros, according to CNMV data
BME’s fixed-income market, AIAF, has admitted to trading Banco de Sabadell’s Euro Medium Term Note (EMTN) Programme for the issuance of fixed-income securities, which is the entity’s main bond and note issuance programme. The programme has a maximum nominal amount of 20 billion, and it will allow Banco de Sabadell to flexibly launch over the next 12 months different series of senior unsecured, non-preferred senior, and subordinated notes and bonds.
Deutsche Bank is acting as Arranger for this programme, and the Dealers are Banco Sabadell, Barclays, BNP Paribas, BOFA Securities, Citigroup, Commerzbank, Crédit Agricole CIB, Deutsche Bank, Goldman Sachs Bank Europe SE, HSBC, Morgan Stanley, Natixis, Nomura, Société Générale Corporate & Investment Banking, UBS Investment Bank, and Unicredit.
Bank of New York Mellon, London Branch, will act as the principal Paying Agent for the issues made under the programme. The law firm A&O Shearman, Madrid office, has provided legal advice to the placing banks, and Linklaters, Madrid office, has advised the issuer.
Banco de Sabadell has long-term issuer credit ratings of A- with positive outlook from S&P Global Ratings Europe Limited (“S&P”), Baa1 with stable outlook from Moody’s Investors Service España, S.A. (“Moody’s”) for senior unsecured debt, A- with stable outlook from Fitch Ratings Ireland Limited (“Fitch”), and A (low) with stable outlook from DBRS Ratings GmbH (“DBRS”).
“We thank Banco de Sabadell for the confidence of registering its EMTN programme in BME’s fixed-income market, AIAF. With this new issuance, we raise above 84.7 billion euros the amount of repatriated bond, commercial paper, and note programmes in recent years from other international markets. It is a major step forward to continue strengthening the competitiveness and solidity of Spanish capital markets,” explains Susana de Antonio, Head of Primary Markets at BME.
BME will apply, in the admission to listing of the issues launched under the program, the new verification and listing admission scheme established after the reform of the Securities Markets and Investment Services Law, which allows fixed-income issuers to be guaranteed an agile, efficient, and competitive mechanism.
As a result of improvements to fixed-income market regulations by CNMV and BME in recent years, since 2019 there have been repatriations of commercial paper, bond, and note issuance programs of Spanish issuers that previously listed on the Dublin or Luxembourg exchanges for an amount exceeding 84.7 billion euros. In fact, this repatriation comes barely two months after the admission to trading on BME’s fixed-income market of Santander’s EMTN programme, under which 18 billion euros were issued last year.
In addition to these two banking entities, the issuers that have repatriated their programs are: ENDESA (5 billion), ICO (30 billion euros), Redeia (1 billion), Sacyr (350 million), CAF (250 million), AENA (3 billion), Masmovil-Euskaltel (200 million), Prosegur Cash (400 million), CIE Automotive (400 million), Ence (200 million), and Enagás (750 million).
This repatriation of Banco de Sabadell’s EMTN programme confirms a trend highlighted in the latest CNMV Quarterly Markets Report, which indicated that admissions to listing of fixed-income securities in Spanish capital markets grew 42% last year to 68 billion euros.
Improving the conditions for admitting issues in Spain is part of the objectives included in the report prepared by the OECD for the CNMV: “Capital Market Review of Spain 2024,” and the joint industry working groups set up by the regulator and BME for the analysis and development of its recommendations.
You can find more information about BME's fixed income markets on its website.